NEW ZEALAND GAZETTE, No. 2 — 12 JANUARY 2017

1. The Encumbrancer acknowledges that the covenants in this Encumbrance are of a permanent nature, and the Encumbrancer shall not be entitled to a discharge of the Encumbrance during the term, whether by payment of the total security or otherwise.

2. The Encumbrancer covenants with the Encumbrancee that:
   a. the Encumbrancer will not dispose of any or all of the Land without first satisfying its obligations under section 40 of the Public Works Act 1981;
   b. the Encumbrancer will advise the Encumbrancee of the proposed sale; and
   c. if the Encumbrancer sells any or all of the Land before the expiration of five years from the date of publication of this notice in the New Zealand Gazette, the Encumbrancer shall pay 20% of the net proceeds of sale (or such lesser amount agreed by the Encumbrancee) to the Encumbrancee.

3. This rent-charge shall immediately determine and the Encumbrancer shall be entitled to a discharge of this encumbrance if the covenants expressed herein become obsolete or no longer enforceable or where any sunset provision is enacted amending section 40 of the Public Works Act 1981 which provision makes the term of this Instrument redundant.

4. The Encumbrancer shall pay its own costs incurred during the course of this encumbrance.

5. Sections 97, 154 and 156 of the Land Transfer Act 1952, and sections 23, 289 and 301–302 of the Property Law Act 2007 shall apply to this Encumbrance but otherwise (and without prejudice to the Encumbrancee’s rights of action at common law as a rent-chargee) the Encumbrancee shall not be entitled to any of the powers and remedies given to encumbrancees by the Land Transfer Act 1952 and the Encumbrancee and its successors and assigns shall not be entitled to any of the powers and remedies given to mortgagees under the Land Transfer Act 1952 or the Property Law Act 2007.

6. The Encumbrancer covenants with the Encumbrancee:
   a. to pay all legal costs and disbursements in the execution, registration, enforcement and any ultimate release of this Encumbrance Instrument, in respect of any consents sought by the Encumbrancer from the Encumbrancee to the registration of any instrument, and in respect of the performance and observance by the Encumbrancer of this Encumbrance Instrument including legal costs on a solicitor/client basis; and
   b. to otherwise indemnify the Encumbrancee against any claims, loss and expense of whatever kind incurred by the Encumbrancee as a consequence of the Encumbrancer failing to comply with this Encumbrance Instrument.

7. No delay or failure by the Encumbrancee to enforce performance of any of the covenants set out in this Encumbrance Instrument and no indulgence granted to the Encumbrancer by the Encumbrancee shall prejudice the rights of the Encumbrancee to enforce any of the covenants or provisions of the Encumbrance Instrument.

8. The Encumbrancee acknowledges that this Encumbrance does not preclude the Encumbrancer from leasing (subject to compliance with any statutory constraints) or mortgaging or allowing security of whatever kind over the Land and consent from the Encumbrancee, except in any regulatory role, shall not be required.

9. The Encumbrancer:
   a. acknowledges that this encumbrance:
   i. has been granted for valuable consideration received, in full compensation for the grant of this encumbrance instrument; and
   ii. is intended to charge the Land and bind the Encumbrancer (and successors) to perform the Encumbrancer’s obligations for the period of time set out in this encumbrance instrument; and
   b. therefore covenants with the Encumbrancee:
   i. not to seek to discharge, surrender, lapse, vary, amend, withdraw or remove in any manner whatsoever this encumbrance instrument prior to the expiry of that period of time, whether by payment of the total security or otherwise; and
   ii. to preserve for the period of time set out in this encumbrance instrument the integrity of the

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